Insurers need to understand that fundamental changes in
consumer behaviour mean that tinkering with products is no longer good enough.
A new research study by Weber Shandwick emphasises how the
rise of short-term thinking among consumers is impacting their attitudes
towards insurance, leaving providers at risk of further alienating their
customers if they do not respond to this change.
One in two consumers say that many insurance products do not
fit their lifestyle or their individual needs. This reflects a fundamental
shift in consumer behaviour as consumers are being re-wired to think only for
the short term as new technologies drives a hunger for instant gratification.
46% feel that life insurance has become an expensive luxury.
29 % disagreed with the suggestion that they would need more
financial products, services and advice in the future.
Insurance companies should be concerned that despite efforts
to simplify the language used to promote products and services, 48 % do not
understand the jargon used by companies to promote their products.
Juliet Carey of Weber Shandwick says, “Many consumers feel overloaded by
the torrent of gadgetry and technology they are exposed to in day to day life
and insurance companies are at risk of falling victim to a potential backlash.
The solution is to focus on simple products which serve clearly defined short
term consumer needs.”